Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Goldman Sachs 27th Annual Communacopia Conference 2018
24 slides from Nexstar Media's conference presentation, September 2018
Slide 1: Goldman Sachs 27th Annual Communacopia Conference
NXST: NASDAQ Goldman Sachs 27th Annual Communacopia Conference Tom Carter, EVP & CFO SEPTEMBER 2018
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This communication includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward-looking statements include information preceded by, followed by, or that includes the
Slide 3: Nexstar Media Group, Inc. (Nasdaq: NXST)
Nexstar Media Group, Inc. (Nasdaq: NXST) One of the Largest North American Local Media Companies Positioned for the Ongoing Enhancement of Long-Term Shareholder Value • Pure-play broadcast television and digital media leader with broad geographic scale and reach – #2 in broadcast group in terms of U
Slide 4: 2017: Record Financial Results For Sixth Consecutive Year
2017: Record Financial Results For Sixth Consecutive Year NXST Generated Record Financial Results For Sixth Consecutive Year • Surpassed $2.0 bn in annual net revenues for the first time in the Company’s history NXST LTM 2017 Financial Results Y/Y and Non-Political Odd-Year Comparison 12M Ended Dec.
Slide 5: Key 2017 Events: MEG Integration and NXST Operating
Key 2017 Events: MEG Integration and NXST Operating Precise Execution On All Facets Of Our Business Including Operations, Integration, Synergy Realization • Completed transformative acquisition of MEG for $4.6 bn creating Nexstar Media Group, Inc, and simultaneously completed 13 station required sta
Slide 6: 2018: 2Q and 1H18 Results and Capital Allocation/Structure
2018: 2Q and 1H18 Results and Capital Allocation/Structure NXST Generated Record YTD 2018 Financial Results NXST 2Q18 and 1H18 Financial Results Y/Y and Non-Political Odd-Year Comparison1 3M Ended Jun. 30 6M Ended Jun. 30 3M Change (%) 6M Change (%) (in millions) (in millions) 2018 2017 2016 2018 20
Slide 7: 2018: 2Q and 1H18 Results and Capital Allocation/Structure
2018: 2Q and 1H18 Results and Capital Allocation/Structure NXST YTD 2018 Capital Allocation / Structure Since the MEG transaction close in January 2017, NXST has returned $239 mm to shareholders in the form of dividends and share repurchases and reduced total net debt by ~$570 mm through 2Q18 CASH D
Slide 8: Key 2018 Events: NXST Operating
Key 2018 Events: NXST Operating • Completed accretive acquisition of LKQD, a leading video ad infrastructure company, for ~$94 million cash in Jan. 2018 – LKQD’s video advertising platform has the largest reach in the US to viewers across digital devices1 – Expands Nexstar Digital’s product offering
Slide 9: One of the Largest North American Local Media Companies
One of the Largest North American Local Media Companies 171 Local TV Stations 40 U.S. States 100 U.S. Markets 26% Household Reach* Growing Digital Business Note: Inclusive of UHF discount. 9
Slide 10: Leading Pure-Play Broadcast Operator
Leading Pure-Play Broadcast Operator Financial Strength and Flexibility to Pursue Additional Select Accretive Acquisitions % of U.S. Television Households Reached Household Reach Excluding UHF Discount 72% Household Reach Including UHF Discount 39% 38% 37% 36% 39% FCC Cap on National TV Ownership 31
Slide 11: Expanded Geographic Reach and Increased Scale
Expanded Geographic Reach and Increased Scale 171 Local Television Stations across 100 markets in 40 U.S. States 11
Slide 12: Nexstar Broadcasting, Inc.
Nexstar Broadcasting, Inc. Superior Locally Produced Content and Network Programming for Viewers; Unrivaled Consumer Reach / Influence for Local Businesses and Advertisers • Leading local broadcast television operator – #2 broadcast group in terms of U.S. television household reach of 26%* • Financi
Slide 13: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals 1. Proven Business Model with High Barriers to Entry U.S. Pay TV Subscriber Growth (% Chg. Y/Y) vMVPD excluded vMVPD included • The pay TV subscriber model traditional MVPDs (cable/satellite) and virtual 5.0% MVPDs (internet) has been relatively stable over the
Slide 14: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals 4. Greatest Share of Consumers’ Time Spent Daily Time Spent with Media Among American Adults (HH:MM) 1Q18 3Q17 Change • Traditional TV has proven to be resilient, maintaining its central position in America’s households in an era of media industry disruption Vi
Slide 15: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising NXST Political Ad Revenue Growth NXST 2018 Political ($ millions) Senate and Gubernatorial Elections 2018 Senate Races (28) 2018 Gubernatorial Races (31) Even Year Odd Year NXST Market Incumbent Party NXST Market Incumbent Party Arizona Jeff Flake R Al
Slide 16: Growth in NXST Retransmission and Digital Media Revenue
Growth in NXST Retransmission and Digital Media Revenue Retransmission and Digital Media revenue is materially diversifying NXST’s total net revenue NXST Retransmission & Digital Media Revenue NXST Retransmission Revenue ($ millions) $995.8 (% of Total Net Revenue) Retransmission Revenue as a % of T
Slide 17: Nexstar Digital LLC
Nexstar Digital LLC Comprehensive Suite of Cross-platform Digital Marketing Products and Services for Local and National Media Companies, Advertisers, Agencies and Brands • Leading local digital advertising and content monetization solutions and services – Profitable / growing business segment with
Slide 18: High-Growth Digital Industry Trends
High-Growth Digital Industry Trends Creating Superior New Revenue Locally Opportunities Produced Content Through and Network Digital Innovations, ProgrammingProducts for Viewers; and Services Local Advertising Share by Type: 2016-2021 Growth in Digital Media Time Spent in Minutes (MM) Print Media Ot
Slide 19: Significant FCF Growth
Significant FCF Growth NXST Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) 2 + $600.0 1 $390.8 $184.0 $82.7 $47.2 2010/2011 2012/2013 2014/2015 2016/2017 2018/2019E 1 Reported average annual free cash flow before transaction expenses in the twenty-four month perio
Slide 20: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Core Revenues $2,432 $1,270 $914 $1,103 $523 $532 $896 $631 $349 $389 $502 $238 $213 $236 $247 $266 $369 $388 $285 $252 $313 $306 $379 $265 $279 $172 $157 $174 $182 $190 $357 $66 $55 $62 $66 $76 $113 $110 $154 $144 2008A 2009A 2010A 2011A
Slide 21: 2Q18 Financial Summary
2Q18 Financial Summary Three Months Ended June 30 6-Months Ended June 30 ($ in thousands) 2018 2017 Change 2018 2017 Change Local Revenue $ 198,560 $ 209,594 (5.3 )% $ 391,828 $ 388,070 +1.0 % National Revenue $ 71,633 $ 77,256 (7.3 )% $ 138,678 $ 143,238 (3.2 )% Political Revenue $ 31,636 $ 5,488 +
Slide 22: Debt/Leverage Analysis
Debt/Leverage Analysis TTM ENDED 2Q18 (in millions) 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 6/30/18 Revolver $ 24.3 $ - $ - $ 5.5 $ 2.0 $ 2.0 $ 3.0 $ - First Lien Term Loans 148.1 288.3 545.4 705.1 682.2 662.2 2,791.9 2,719.9 8.875% Sr. Sec 2nd Lien Notes 318.4 319.4 - - - - -
Slide 23: Transformational M&A and Operating Strategies Driving Record FCF
Transformational M&A and Operating Strategies Driving Record FCF • Continued growth of non-core revenue channels – Political: Even-year CAGR of 35% (2008-2016), odd-year CAGR of 26% (2009-2015) • NXST Political revenue exceeded ~$100 mm guidance in 2016 by 8.5% – Retransmission: Contract renewals fo
Slide 24: Goldman Sachs 27th Annual Communacopia Conference
NXST: NASDAQ Goldman Sachs 27th Annual Communacopia Conference Tom Carter, EVP & CFO SEPTEMBER 2018
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